An instant small cash loan is a personal loan, usually ranging from ₹10,000 to ₹2 lakhs. As instant cash loans are collateral-free, it is risk free and can be availed quickly in case of any urgent monetary crisis. Small cash loans are a convenient financial tool to cover urgent personal expenses like medical bills, wedding expenses, funding a trip, home renovation, and buying your favourite gadgets.
A quick way to secure instant small cash loans is with Buddy loan. With a pool of trustworthy RBI approved lenders, you can get instant cash for your urgent needs!
Interest rates on small cash loans varied over a wide range, and borrowers must be careful to check the interest rates and read the terms and conditions of the loan carefully before agreeing to borrow. It is important to only borrow what is necessary and to have a plan in place to repay the loan on time to avoid additional charges.
With Buddy Loan, you can secure small cash loans immediately at affordable interest rates starting from 11.99% p.a.
|Small Cash Loan Interest Rate
To avail any loan, you need to meet certain criteria set by the lenders and become eligible for the loan. A small cash loan is no exception. In order to avail it, you must meet the eligibility criteria of a mini cash loan set by your preferred lender.
Although the eligibility requirements may vary from lender to lender, the following are some of the common eligibility criteria that you must meet:
Age: Must be between the ages of 21 and 60 years.
Citizenship: Must be a resident of India.
Credit Score : Most lenders accept a credit score of 750 and above. A higher score increases the chance of approval.
Income: A minimum income of ₹15,000 per month
Not sure of your credit score? Check now for free!
Before securing a loan, start by using the EMI calculator. Input the loan amount, interest rate, and loan term to quickly determine your estimated monthly payment, ensuring it fits comfortably into your budget.
To compute your Equated Monthly Instalment (EMI), use this mathematical formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]
In this equation:
"P" = principal amount.
"R" = interest rate.
"N" = loan repayment period.
Calculate your EMI by plugging in the specific values for these variables.
Lenders will typically require proof of income and employment, as well as other personal and financial information to approve you instant cash loan.
Given below are the commonly required documents to avail a small cash loan from any bank or NBFC.
Proof of Identity - Aadhaar Card, PAN, Voter ID etc.
Proof of Address - Aadhaar Card, PAN, etc.
Proof of Income - Salary slips of last 3 months if requested.
Ready to take the next step? Apply for a personal loan now!
Small cash loans come in various forms, and they are designed to provide you with quick access to a relatively small amount of money. Here are some common types of small cash loans:
Payday Loans: Payday loans are short-term loans intended to cover expenses until the your next payday. They are usually for small amounts and come with high-interest rates. The loan should be repaid in full, along with fees, on your next payday.
Title Loans: Title loans involve using a valuable asset, such as a car title, as collateral for the loan. The loan amount is often a percentage of the appraised value of the asset. Failure to repay can result in the loss of the asset (e.g., the vehicle).
Cash Advances: Cash advances are short-term loans offered by credit card companies. You can withdraw cash up to a certain limit. Typically, repayment is required within a short period, and interest is accrued immediately.
Microloans: Microloans are small loans provided by nonprofit organizations, community development financial institutions (CDFIs), or online lenders. They are often aimed at supporting small businesses or individuals in low-income communities.
Line of Credit: It is a form of revolving credit that comes with a predetermined maximum limit. You will have the flexibility to withdraw funds as needed, up to the established limit. The interest paid only on the amount used.
Quick Loans: These loans are another version of small cash loans offering fast approval and disbursement, often through online lenders. Quick loans are ideal for urgent financial needs, but borrowers should be aware of higher interest rates
Emergency Loans: These Loans are specifically created for unexpected financial crises, providing quick access to funds. It comes in handy to cover unforeseen expenses.
An instant cash loan of small to medium amount has several features and benefits that make it a handy financial tool to cover emergency expenses. Check out below the most beneficial features of small cash loans or mini cash loans.
Easy Application - Minil cash loans offer a streamlined, hassle-free application process.
Less Documentation - These loans typically require very little paperwork and have flexible credit checks.
Unsecured Convenience - Small cash loans rarely require collateral, making them easily accessible.
Financial Flexibility - These loans provide a convenient solution for covering unplanned expenses.
Credit Building Opportunity - Timely repayments can help improve your credit history and score.
Swift Repayment - Enjoy the advantage of short and manageable repayment periods.
Small cash loans are unsecured loans which are issued without any security,needs minimal documentation and have a quick approval time. There are some lenders who offer an instant cash loan against just your Aadhaar and PAN card. If you meet the eligibility and provide the correct information, you can easily get your small cash loan approved in just one hour.
Check out the various Aadhaar card loans that you can avail at anytime, from anywhere.
P2P lending in India falls under RBI's jurisdiction, with strict guidelines in place. Companies offering P2P services must secure an NBFC-P2P license. RBI also ensures systemic stability, requiring P2P platforms to have a Business Continuity Plan for user data and loan servicing in case of a platform shutdown.
While these regulations reduce risks, P2P lending still carries inherent investment risks.
The major risk in peer-to-peer lending is borrower default, where the borrower doesn't repay both interest and principal. P2P platforms can assist lenders in recovery and legal action against the defaulter.
Assessing borrower risk is crucial, and diversifying investments across creditworthy borrowers can reduce but not eliminate the risk.
As per Section 56(2) of the Income Tax Act of 1961, only the interest part of an Equated Monthly Instalment (EMI) is subject to taxation, falling under the government's "Income from other sources" category. Your tax liability is determined by the relevant tax slab rate.
Peer-to-peer (P2P) lending platforms often charge processing fees, which can vary between platforms and are typically deducted from the loan amount or paid by the borrower. For most lenders, it ranges between 1-10% of the loan amount.
Let’s go through the steps to apply for a Personal Loan with low salry on Buddy Loan from below:
Step 2: Open the Personal Loan Application Page. Provide the mobile number and enter the received OTP.
Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
Step 5: Enter your work details (Including company name, years of service and Designation)
Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.
Take the next step!
A small cash loan is a short-term, unsecured personal loan for a small amount of money, typically between ₹10,000 and ₹2 lakhs.
When applying for a small cash loan, the lender assesses your eligibility based on income and credit score. Upon approval, you'll quickly receive the loan and repay it with interest over a specified period.
Yes, you can get an online small cash loan immediately.
To apply for an instant cash loan through Buddy Loan, you can visit their website or download the Buddy Loan mobile app. For detailed steps, read the article above.
Instant cash loans provide quick, collateral-free funds for various purposes, including unexpected expenses, debt consolidation, and purchases.
You can borrow between Rs. 10,000 and Rs. 50,000 with a small cash loan. However, the exact amount will depend on your lender and your eligibility.
It is possible to get a small cash loan with bad credit, but you may have to pay a higher interest rate. Some lenders specialise in lending to borrowers with bad credit.
You may be charged a late fee and your credit score may decrease.
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